Barack Obama plans to nominate former Procter & Gamble executive Robert McDonald as the next veterans affairs secretary as the White House seeks to shore up the crisis-hit agency.

An administration official said the president would announce McDonald's appointment Monday. If confirmed by the senate, McDonald would succeed Eric Shinseki, the retired four-star general who resigned last month as the scope of the issues at veterans' hospitals became apparent.

In tapping McDonald for the post, Obama is signaling his desire to install a VA chief with broad management experience. McDonald also had military experience, graduating near the top of his class from West Point and serving as a captain in the Army.

The administration official insisted on anonymity in order to confirm McDonald's appointment before the president's announcement.

The VA operates the largest integrated health care system in the country, with more than 300,000 fulltime employees and nearly 9 million veterans enrolled for care. But with the system struggling to cope with thousands of servicemen returning from the conflicts in Iraq and Afghanistan, the agency has been beset by reports of patients dying while waiting for appointments and of treatment delays in VA facilities nationwide.

Obama dispatched one of his top advisers, Rob Nabors, to investigate agency issues and appointed Sloan Gibson as acting secretary while awaiting a permanent replacement.

Nabors and Gibson delivered a scathing report to Obama, citing "significant and chronic system failures" in the nation's health system. The report also portrayed VA as an agency battling a corrosive culture of distrust, lacking in resources and ill-prepared to deal with an influx of new and older veterans with a range of medical and mental health care needs.

The nomination of McDonald, 61, was praised by his peers in the private sector and military.

Jim McNerney, chairman and chief executive of Boeing, welcomed the development. "I believe Bob McDonald is an outstanding choice for this critically important position. Following his military service, Bob spent more than three decades in business, where he rose through the ranks leading increasingly large and complex organisations by demonstrating strong management skills and by understanding and attending to the needs of hundreds of thousands of individual consumers of Procter & Gamble."

House speaker John Boehner called McDonald "a good man, a veteran and a strong leader with decades of experience in the private sector. With those traits, he's the kind of person who is capable of implementing the kind of dramatic, systemic change that is badly needed and long overdue at the VA."

Senate VA committee chairman Bernie Sanders said in a statement that he looked forward to meeting with McDonald next week to get his views on issues he views as important.

Among them, Sanders said in a statement: "The VA needs significantly improved transparency and accountability and it needs an increased number of doctors, nurses and other medical staff so that all eligible veterans get high-quality health care in a timely manner."

McDonald, who was born in Gary, Indiana, led Procter & Gamble from 2009 to 2013 but he struggled to grow the detergent to toothpaste conglomerate under increased competition and global economic challenges. Critics suggested he was having trouble getting the 150-year-old-plus company to fire on all cylinders.